Maana Lifestyle Supermarket attendant arranges bread at Luanda town in Vihiga on April 11, 2020. [Benjamin Sakwa, Standard]Bakers have criticised the government’s move to introduce value-added tax (VAT) on bread and its products. “This will be in violation of the fundamental right to affordable food.”The planned tax comes a few months after manufacturers increased the price of bread by Sh5 following a jump in global wheat prices. The price of bread has remained stable over the years due to zero-rating on tax, with manufacturers competing for the small margins buoyed by economies of scale. The key targets are fuel, alcoholic drinks, betting, cigarettes and financial transactions, with bread and milk formula slapped with 16 per cent VAT.

Source: Standard Digital May 21, 2021 06:56 UTC